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M was the subject of an Individual Voluntary Arrangement (IVA), in respect of which the creditors had directed the supervisors to petition for his bankruptcy on the grounds of default. In response, M sought to propose a further IVA. Registrar Jones adjourned the petition. The default had been made out. In the confusion as to the plethora of creditors meetings as regards the second IVA proposal, it was clear that there had not been proper adjournments, to the effect that the creditors were deemed to have rejected the proposal. There was no purpose in extending further time for further meetings because HMRC, who held more than 25% of the debt, were not in favour. Nonetheless, the petition should be adjourned to allow those creditors who would not defer their debts to be paid from the sale assets outside of bankruptcy as that would maximise the recovery and save costs.
(See Putting off the evil day; IVA proposals and adjourning bankruptcy petitions for a detailed analysis of this decision)
"This is the ultimate statement of where the law on IVAs is to be found in our great common law...